OAR 123-674-1100
Basic Eligibility of Firms and Operations

For purposes of determining the business eligibility under ORS 285C.135 (Requirements for eligibility)(1) in an enterprise zone:

(1)

The Firm/applicant (when qualified) must:

(a)

Be a business firm consistent with OAR 123-674-1000 (BUSINESS ELIGIBILITY — Special Business Distinctions)(2); and

(b)

Produce, sell or provide goods, commodities, products, merchandise, work or services to other businesses, business operations or organizations, or be capable of doing so, through eligible activities.

(2)

A business firm’s relevant operations will indicate such eligibility if they are:

(a)

Performed for internal purposes of the firm;

(b)

Reimbursed through sales to another business firm;

(c)

Equivalent to what is done for other business firms, even if the actual customer is a government agency or a public or nonprofit corporation/organization; or

(d)

Undertaken to create or add value to goods, products or services for ultimate exchange with persons or entities residing beyond the local economy.

(3)

Besides manufacturing, assembly, fabrication, processing, shipping or storage, eligible activities include:

(a)

Industrial processes or services such as cleaning, coating, curing, kiting, labeling, laminating, packaging, refining, smelting, sorting or treating;

(b)

Generation or co-generation of electricity, steam or heat;

(c)

Recycling of post-consumer or post-production materials or wastes;

(d)

Nonretail, in-shop refurbishment or restoration of equipment or machinery;

(e)

Maintenance service or repair work on vehicles, products, parts or devices, performed on a nonretail (e.g., contract) basis at a permanent location, facility or shop, including but not limited to warranty service contracted or paid for by the manufacturer;

(f)

Technical/customer support performed for internal purposes of the firm, or contracted or paid for by a nonretail third party such as a product’s distributor or manufacturer contracts or pays;

(g)

Standardized product testing, quality control or laboratory work, including but not limited to services provided to healthcare businesses or organizations that themselves treat patients;

(h)

Bulk clerical processing or data center operation for internal or external business services;

(i)

Development of standardized computer software products or customized products for business users;

(j)

Printing or mass document production;

(k)

General production of molds, forms, models, prototypes or similar items for other businesses that does not, in and of itself, merely fulfill an architectural, design or similarly advanced professional service;

(l)

Distribution, including shipping, storage and warehouse functions that entail deliveries generally beyond the local area/enterprise zone boundary or to recipients who are variously businesses, organizations, or households for which the delivery is not a direct consequence of a retail purchase;

(m)

Wholesaling, which may include complex transactions for single-item purchases by other businesses of large equipment involving contracts, factory-ordered specifications or other attributes distinguishing the sale from retail;

(n)

Production of agricultural, mineral, timber or other primary goods or commodities; or

(o)

Similar types of business operations.

(4)

As a matter of principle, eligibility and ineligibility are mutually exclusive under ORS 285C.135 (Requirements for eligibility).

Source: Rule 123-674-1100 — Basic Eligibility of Firms and Operations, https://secure.­sos.­state.­or.­us/oard/view.­action?ruleNumber=123-674-1100.

123‑674‑0001
Purpose, Scope and General Process for Businesses Seeking Exemption 123‑674‑0100
Definitions 123‑674‑0200
General Employment Terminology and Issues 123‑674‑0500
EXTENDED TAX ABATEMENT — General Points 123‑674‑0600
Compensation & Wage Standards 123‑674‑0700
Written Agreement between Sponsor and Eligible Business Firm 123‑674‑1000
BUSINESS ELIGIBILITY — Special Business Distinctions 123‑674‑1100
Basic Eligibility of Firms and Operations 123‑674‑1200
Ineligible Activities 123‑674‑1300
Eligible Business Firm with Ineligible Activities 123‑674‑1400
Gross Receipts Test 123‑674‑1600
Call Centers and Like Operations 123‑674‑1700
Headquarter Facilities 123‑674‑2000
AUTHORIZATION PROCESS — Timely Submission 123‑674‑2100
Allowably Late Applications 123‑674‑2300
Initial Processing by Local Zone Manager 123‑674‑2500
Final Processing 123‑674‑3000
AUTHORIZATION’S COVERAGE & EFFECT — Being An Authorized Firm 123‑674‑3100
Limitations on Exemption Relative to Authorization 123‑674‑3200
Amending the Application/Authorization 123‑674‑3500
Additional, Concurrent Authorizations 123‑674‑3700
Renewal of Active Status and Inactive Authorization 123‑674‑4000
EMPLOYMENT OF FIRMS — Computation of Averages 123‑674‑4100
Employment Requirement to Qualify Initially 123‑674‑4200
Diminishing Employment Well beyond the Zone 123‑674‑4300
Local Waiver of Employment Increase inside Zone 123‑674‑4600
Maintaining Sufficient Employment 123‑674‑4800
Sale or Leasing of Exempt Property 123‑674‑5000
QUALIFIED PROPERTY— Critical Terms 123‑674‑5100
Eligible Utilization 123‑674‑5200
Mechanical, Personal and Unqualified Property 123‑674‑5300
Buildings, Structures and Other Real Property 123‑674‑5400
Property Already Entered on Rolls 123‑674‑5500
Obligations for All Leases, Lessors and Lessees 123‑674‑6000
FILING & COMPLIANCE — Exemption Prior To ‘In Service’ 123‑674‑6100
Mandatory First-year Claim with Property Schedule 123‑674‑6200
Filing Latter-year Claims 123‑674‑6300
Disqualification of Particular Property 123‑674‑6400
General Firm Disqualification 123‑674‑6600
PAYBACK IN LIEU OF DISQUALIFICATION — Applicability 123‑674‑6610
Payment of Tax Savings 123‑674‑6620
Distribution of Payment among Cosponsors 123‑674‑6630
Utilization of Payments 123‑674‑6880
Deferral during Recession 123‑674‑6885
Additional Conditions with Deferral 123‑674‑7200
GENERAL LAWFULNESS — Terminology 123‑674‑7210
Declarations and Responsibilities 123‑674‑7220
Effect of Event of Noncompliance 123‑674‑7230
Materiality 123‑674‑7240
Cure 123‑674‑7250
Interpretation 123‑674‑7700
FIRST SOURCE HIRING AGREEMENTS — Coverage 123‑674‑7710
First-Source Procedures 123‑674‑7720
Handling Exemption Claims 123‑674‑7730
Allowing Late Execution of First-Source Agreement 123‑674‑8000
ZONE BEGINNINGS & ENDS — Designation or Amendment 123‑674‑8100
Authorization and Zone Termination 123‑674‑8200
Grandfathering in a Terminated Zone 123‑674‑8300
Timely Completion of Construction
Last Updated

Jun. 8, 2021

Rule 123-674-1100’s source at or​.us